1. Change Management
Tool

2. The Matrix of Change (MOC)
Helps identify critical enforcing and conflicting interactions within an existing organizational system;
Helps identify how the existing interactions can transition to a proposed organizational system;
Can provide useful insights regarding:
change, feasibility, sequence, location, and pace.

3. The Matrix of Change (MOC)

4. The Matrix of Change (MOC)

5. The Matrix of Change (MOC)

7. First Step: Identify Critical Processes
Managers should first list their existing goals, business practices, and ways of creating value for consumers.
A process is "a structured, measured set of activities designed to produce a specified output ... a specific ordering of work activities across time and place, with a beginning, an end, and clearly identified inputs and outputs. (Davenport, p. 5)"
A second list will describe new or target practices.

8. Second Step: Interactions
The team creates the horizontal triangular matrix to identify complementary and competing practices
Complementary processes reinforce one another whereas competing processes work at cross-purposes.

9. Third Step: Transition Interactions
The team constructs the Transition Matrix - a square matrix combining the horizontal and vertical matrices which helps determine the degree of difficulty in shifting from existing to target practices.

10. Fourth Step: Importance
The team needs to determine where various stakeholders stand with respect to retaining current practices and implementing target practices.

11. Final Matrix

12. Analysis: Feasibility
Is the goal state a coherent and stable system?
Is our current set of practices coherent and stable?
Is the transition likely to be difficult?

13. Analysis: Sequence of Execution
Where should change begin?
How does the sequence of change affect success?
Are there reasonable stopping points?

14. Analysis: Pace and Nature of Change
Should the change be slow or fast?
Incremental or radical?
Which groups of practices, if any, must be changed at the same time?

15. Analysis: Stakeholder evaluation
Have we considered the insights from all stakeholders?
Have we overlooked any important practices or interactions?
What are the greatest sources of value?

16. Merril Lynch Old Practices New Practices
Example (Adapted from MIT Sloan – Professor:Brynjolfsson (Fundamentals of Digital Business))
Merril Lynch
Old Practices
Information & Operations
Proprietary & Custom Information
Retail Front Brokerage
Pricing
High Fees
New Practices
Outsourced, generic information
Web and for Interaction
Low Fees